California Group Health Insurance

California group medical insurance plans follow the rules set by Obama Care (Affordable Care Act.) Below are some things that you should know to help you select the right plans for your employee health benefits.

Running a business is hard enough without navigating the ins and outs of group health insurance. We’re expert benefit advisors with decades of experience and we’re ready to help at no additional charge. Contact us or give us a call at (800) 746-0045.

1. Insurance Companies Calculate Rates Differently

   Before Obamacare, small group health plans rates were based on age ranges of employees — less than 30 years old; 30-39, 40-49, and so on. It didn’t matter if the employee’s spouse was young or old, or if they had one child or ten children. There was a single rate for families based on the employee’s age. But not anymore.

   With the introduction of the ACA in 2014, the rate for small group health insurance is based on the exact age of an employee, as well as the age of each dependent spouse and child.

2. Health Plans Are Rated in “Metallic Levels”

   Health insurance is as complicated as it is expensive. To help people understand benefits and compare plans, the federal government uses a process to separate plans into four groups — platinum, gold, silver, and bronze.

   Just like the Olympics, gold is better than silver which is better than bronze. A platinum plan is the best, meaning the insurance company pays the most and the patient pays the least. Under the ACA, all plans must cover at least 60 percent of medical expenses.

3. You Can Save on Plans by Excluding Pricey Providers & Doctors

   The price of medical care varies dramatically between doctors and hospitals. By enrolling in a plan that excludes expensive doctors and medical facilities, employees can obtain comprehensive benefits (e.g., platinum level) at a low cost.

   So, when you evaluate a medical insurance plan for your employees, keep in mind that you can offer a “narrow” or “medium” provider network and spend less than if you offer a “full” network.

4. Small Companies Can Offer a Range of Plans

   Some employees never get sick and only want catastrophic coverage. Others have chronic illnesses and want a plan that covers doctor visits with little contribution. The good news is the ACA gives small businesses the chance to offer a range of options for all types of employees.

5. Small Companies Can Share the Cost of Employee Benefits

   Group medical insurance is extremely tax favored, which is one of the reasons companies offer employee benefits. Unlike wages, employer-sponsored health coverage is not subject to state and federal income taxation — for the employer or the employee.

   All California health insurance companies require employers to contribute a minimum of 50 percent of the monthly cost of an employee-only plan. Most insurance companies also allow an employer to contribute as little as $100 per employee per month. The catch is that if an employer pushes too much cost on to the employee, employees won’t sign up and a group plan needs a minimum percent of the employees to be viable.

BenefitsCafe.com can assist you with all the above and more. Give us a call at 800-746-0045 or complete this contact form.